A federal district court has refused to completely dismiss a covid-19 business interruption lawsuit filed by the owner of several professional sports teams in Washington, DC, based on its coverage of communicable disease provisions.
Washington-based Lincoln Holdings LLC, also known as Monumental Sports, filed a lawsuit against Factory Mutual seeking interruption of its COVID-19 business under its all-risk policy, according to Monday’s ruling by the U.S. District Court for the District of Columbia in Lincoln Holdings LLC et al. v. Factory Mutual Insurance Co .
Lincoln Holdings’ operations include the National Hockey League’s Washington Capitals, the National Basketball Association̵7;s Washington Wizards, the WNBA’s Washington Mystics and the Capital Arena.
The court’s ruling said Lincoln Holdings’ claims under coverage’s physical damage and repairs and its time element provisions require alleged facts showing physical loss or damage, which they did not, and they agreed to dismiss those claims.
But the coverage’s communicable disease provisions, which include the response to communicable diseases and interruptions due to communicable disease, provisions “do not require a showing of physical loss or damage,” the ruling said, refusing to dismiss those claims.
These provisions provide for the cleanup, removal and disposal of the presence of infectious diseases from insured property, the costs of using the insured’s employees to manage reputation and certain loss of income and expenses for business.
Attorneys in the case did not respond to requests for comment.
Also Monday, a federal district court in New York refused to completely dismiss a Covid-19-related business interruption claim, based on what it said is ambiguous policy language, in a lawsuit filed by a Broadway theater group against a Chubb Ltd. unit.